TORONTO, October 29, 2025 – “Ahead of Ontario’s Fall Economic Statement, Ontario’s universities urge the provincial government to ensure their current PSE funding formula review results in a concrete plan that strengthens the sector’s financial foundation, and supports universities so that they can keep delivering the talent, research and innovation that drive Ontario’s economy.
Ontario is at a pivotal moment. Global trade disruptions, new tariffs and rapid technological change are reshaping the economy, while employers face urgent labour shortages in health care, education, technology and more. The question is clear: how can Ontario protect its economy while positioning for future growth?
Ontario’s universities are an essential part of the answer. In fact, students are voting with their feet. Universities have seen a dramatic increase in demand by Ontario high school students. Since 2020, the number of Ontario high school students applying to an Ontario university has increased by 17%, which will only grow in the future. In fact, due to the funding cap on domestic students, universities are supporting nearly 28,000 unfunded students and COU is projecting that by 2030, nearly 77,000 Ontario high school students will be at risk of not getting into the program or university of their choice, posing a significant barrier to access if the current funding cap remains.
Every year, more than 140,000 university graduates enter the workforce ready to power Ontario’s economy, with a 95% employment rate within two years of graduation. Universities are also powering innovation with $3.8 billion a year in university research across key industries – from health care and life sciences to clean technology, advanced manufacturing, and AI. But without sustainable funding, this engine of talent and innovation is at serious risk.
Ontario’s prosperity depends on sustainable universities. Our institutions are equipping students with in-demand skills, helping industries stay competitive, and bolstering communities across the province.
With declining per student funding, the cut and freeze to tuition, and more than $1 billion in lost revenue to date from federal cuts in international student visas, the system has reached a breaking point. Even after significant cost cutting and program closures, Ontario universities are projecting $265 million in deficits in 2025-26, with growing deficits in the years ahead. To protect and grow Ontario’s economy, the government must ensure universities have sustainable funding.
Ontario’s universities are calling on the province to:
- Double and annually grow sustainability funding to reflect increasing costs and ensure universities have the financial resources to protect and grow Ontario’s economy.
- Fund enrolment expansion to meet the growing demand from Ontario high school students.
- Boost operating grants for Northern, small and regional as well as francophone/bilingual programing to reflect the higher costs and special needs in delivering these programs.
- Fund Bill 124 costs and help offset lost revenue from the decline in international students.
Ensuring the financial sustainability of Ontario’s universities is critical to the province’s economic competitiveness and prosperity. By increasing operating funding – alongside universities’ continued commitment to increased efficiencies – we can ensure Ontario is prepared not only to weather economic uncertainty but to lead in the industries that will define its future prosperity.
By working together, the province, industry, community partners and universities can protect Ontario’s competitiveness today while growing the workforce, industries and innovations of tomorrow.”
– Steve Orsini, President and CEO, Council of Ontario Universities
Quick Facts
- Ontario universities receive the lowest per-student funding in Canada and in 2022-23 were only funded at about 55% of the average of all the other provinces.
- The 10% tuition cut in 2019 and ongoing freeze, and declining real per-student operating funding are placing the education, programs and services students rely on at risk.
- Over the last few years, universities have made nearly $550M in budget cuts. Without significantly increasing base operating funding, vital student programs and services will be at greater risk.
- There are an estimated 27,888 Ontario students (full-time and part-time) currently enrolled in Ontario universities that are not funded by the province due to the provincial funding cap on domestic students, with an additional 77,000 forecasted to apply to an Ontario university by 2030 for an estimated total of 104,763.